June 20, 2023

Q1 CU trends show rising net worth, impact of CECL

data flashNAFCU’s latest CU Industry Trends report showed the industry net worth ratio is up nearly 50 basis points from a year ago, and while delinquencies remain low, loan loss reserves surged in the first quarter as the current expected credit loss (CECL) standard took effect for most credit unions Jan. 1.

In addition, NAFCU's member-only CU Performance Benchmark and Operating Expense reports were recently sent to credit unions and are now available for download. These reports provide credit unions with individualized financial performance and expense analyses based on the most recent call report data.

Industry earnings dropped during the first quarter, partly reflecting the rising provision for loan loss expenses. The industry also saw the highest rate of consolidation since 2016, losing 3.9 percent of federally-insured credit unions over the prior year.

Other key data from the first quarter trends report found that:

  • Idaho, South Dakota, Arizona, and Utah saw the highest loan growth; and
  • Iowa, Idaho, Wyoming, and Arkansas saw the highest share growth.

NAFCU’s CU Industry Trends is a quarterly report of the latest trends among credit unions and is sent to members only. It is designed to help credit unions identify patterns in industry performance, and to promote comparisons with their own institutions. The report delivers key trends based on NCUA data, both at the industry level and broken down by region, state, and asset class.

These reports, composed by NAFCU's award-winning research team, are useful tools for tracking credit unions' progress and comparing it against peer averages. Access more of NAFCU's research products here